- Hut 8 Mining (TSX:HUT) shares are up 23.40 per cent this week
- The company is currently leading an uptick of cryptocurrency mining stocks
- Hut 8 Mining has had significant news recently bumping its shares
- The company will be merging with US Data Mining Group
- It also announced a hosting agreement for 6,400 ASIC miners
Hut 8 Mining (TSX:HUT) is having an explosive week after an update of the company merging with US Data Mining Group and an announcement of a hosting agreement for 6,400 ASIC miners.
In mid-June, the company announced an update to the merger with US Data Mining Group (doing business as US Bitcoin Corp.), indicating the combined companies will be merged to form Hut 8 Corp. and will establish it as a large-scale, publicly traded bitcoin mining company.
Hut 8 Mining stated in the release it has filed an amendment to its Form S-4 Registration Statement with the U.S. Securities and Exchange Commission (SEC).
In the amendment, the company said its expected installed self-mining capacity increased from 7.02 Eh/s to 7.05 Eh/s at its mining facilities in Medicine Hat and Drumheller, Alberta; Niagra Falls, N.Y.; Kearney, Nebraska; and Granbury and King Mountain, Texas.
“We are making measurable progress on key files that will positively position New Hut to be very competitive in the market with 7.5 EH/s of self-mining capacity,” Jaime Leverton, CEO of Hut 8, said in a statement.
The two companies had previously announced the merger back in February. Through the merger, Hut 8 will have access to 825W of gross energy across all six sites with self-mining, hosting and managed infrastructure operations.
“Bringing together Hut 8’s operational track record and diversified revenue streams with US Bitcoin’s scalable mining sites, sizeable hosting business, and industry-leading managed infrastructure operations not only accelerates our diversified strategy and positions us for near-term growth, but also establishes us as a strong U.S.-based player that is ready and able to seize additional opportunities as they arise,” Leverton said in the statement.
Hut 8 announces hosting agreement
In addition to Hut 8’s merger, it announced on June 22 that it has entered a hosting agreement for roughly 6,400 ASIC miners that were previously energized at its North Bay site.
The agreement includes a three-month term that will have the option to be renewed for one-month periods after that.
In March, 988 miners were located at the North Bay facility and energized at the company’s Medicine Hat facility.
“Relocating our miners will provide us with approximately 600 PH/s of additional installed operating capacity,” Leverton said in a statement. “Once the machines are energized, our total installed hashrate will increase to approximately 3.2 EH/s.”
Bitcoin reaches one-year high
Stocks such as Hut 8 have rallied over the course of the week as bitcoin reached a one-year high on Friday to US$31,400 after news of BlackRock getting approval for a bitcoin exchange traded fund (ETF) from the US Securities Commission (SEC).
Business Insider reported that the fund manager entered a partnership with CoinBase last year and that the crytpo exchange would use a bitcoin custodian on behalf of the iShares Bitcoin Trust if it was approved.
Shares of Hut 8 Mining (V.HUT) closed Friday’s trading session at C$3.86, up 4.89 per cent over the trading period.
Join the discussion: Find out what everybody’s saying about this stock on the Hut 8 Mining Stock Forum, and check out the rest of Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.